Bankruptcy question

[simon.b]

My grandma is selling her house and it turns out that it is worth a hell of a lot more than she ever thought. She is therefore considering helping with my situation (looks like BR) but rather than paying £31k to avoid BR she may pay the monthly repayments for the 3 years of it's term instead which I think would equate to about £14k.

How would I go about doing this? Can she set up a DD into my account? I don't want the OR to ask that I pay more because of any help that I get because I may as well just do it myself if that was the case?

Any helpful advice on the implications and feasibilty of this would be much appreciated....





Yes... I know I ask too many questions!

[MelanieGiles]

Hi simon

Sorry, but I don't understand your question. Are you talking about your grandma paying your payments under an Income Payments Order in bankruptcy? If so where does the £31k figure come from? Property equity?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[iva_squirrel]

Hello,

The Official Receiver can look at your income (taking into account expenses such as your general living expenses, rent and household bills) and decide if payments should be made to your creditors.

You may be asked to sign an 'income payments agreement' to pay fixed monthly instalments from your income for three years.

However, if you have no disposable income then you can not make any payments. If you have no disposable income then why would your grandma pay for the monthly payments?

Have you heard of Full and Final Settlement IVA?

If you owe money, you can ask your creditors to let you pay a lump sum which is less than the full amount of your debt. This is called a Full and Final Settlement. In return for this payment your creditors agree to write off the rest of what you owe.

As a rule, people are in a position to make such an offer because they’ve come in to some money or have some savings they can use. Alternatively, a friend or relative may be able to provide the sum required.

Do you think she would consider giving you a percentage of £31K to clear the whole debt?


Kind regards,



Julia



For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[iva_squirrel]

Hello Simon,


A Full and Final settlement IVA is a legally binding arrangement with your creditors which allows you to repay a proportion of your debt in a one off lump sum payment. Normally the lump sum is raised by remortgaging your property or introducing a lump sum from relatives.

Creditors are likely to accept your full and final settlement if we can demonstrate that this offers a better return than bankruptcy.

A meeting of your creditors is held and creditors are able to vote on whether to accept, alter or reject your proposals. As long as you proposals demonstrate a genuine desire to repay as much of your debt as you can afford, it is likely that creditors will accept your IVA. It is the insolvency practitioner's role to guide you on what creditors will find acceptable.

Once your IVA is approved all interest and charges on your unsecured debt is frozen. Also due to the fact that an IVA allows you to repay a proportion of your debt, then as long as you adhere to the agreed terms, the remaining balance of your debt will be written off.

Depending on your creditors, £15K sounds like a good offer to me.

Could you tell me who the creditors are please?

Regards,



Julia

For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[MelanieGiles]

Hi Simon

Julia's suggestion is a good one. I do lots of these types of proposal, and they are generally welcomed by creditors as they get some money back at an earlier stage.

You are a lucky boy to have such a generous grandma, and do consider whether it is worth dipping into her retirement fund to pay off your debts!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[finebridge]

Hi Simon,

It would certainly seem form the information you have posted a full & final IVA would probably be the best way forward. These sorts of IVA's are very common and dependant on figures quite often accepted by creditors as they receive their money fairly quickly.

Kind Regards

Nicola


Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Oliver]

Agree with the others that the Full and Final option could suit your circumstances. This is proposed in exactly the same way as a "normal" 5 year IVA so you will need to contact an Insolvency Practitioner who can put your proposal forward to the creditors.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

Hi Simon

Of course you are not asking too many questions! Ask as many as you like - that is what the forum is all about.

A full and final settlement does look an option for you based upon the information you have provided, and you should now seek more detailed specific advice if you wish to proceed with and IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

Hi Simon

If you feel that I can help you, then I will be delighted to do so, so please contact me via my website and we will see what we can do. T

There are also other experts on this forum as well, so you might also like to take a second and a third opinion just to compare advice before you make a final decision as to the way forward.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk